Interested in getting a great deal on a Baton Rouge house? Working with the right property wholesaler can save you thousands on your real estate purchases! In our latest post, we will discuss 5 things to know about buying wholesale properties in Baton Rouge.
Are you interested in buying property at wholesale prices in Baton Rouge? I think it is one of the best ways to find investment property deals since the MLS is picked over. However, there are a few things that can keep you from getting the deal you think you are getting. Below, we discuss what you can expect and what you should look for when buying a wholesale property in Baton Rouge or the surrounding areas.
What Can It Offer?
Investors and rehabbers love working with good wholesalers. When you work with an experienced one, you can skip the tedious deal finding process and negotiations. If you consistently work with one or two wholesalers, you will build a relationship and they will come to you first and give you better pricing. They know what you are looking for and you will know what quality properties to expect from them.
Not All Wholesalers Are The Same
There are probably hundreds if not 1,000 wholesalers in Baton Rouge. Some definitely know what they are doing and have experience with a variety of deals, while others are new and learned about it from some online class or seminar, and think it is easy money. At BuyHousesBR LLC, we strive to get to know our buyers and understand what they are looking for. We work with them, finding properties for them that fit their criteria. Everything is straight forward and all of our fees are explicitly stated. We do multiple transactions a month, so we know how to find and negotiate the best deals. They won’t all be home runs, but you will make a good bit of money.
Inspecting The Property
Due-diligence is essential for any real estate investment. Run your numbers, walk through the home, or have a certified home inspector complete the inspection if you don’t know what to look for. Anything you or the inspector are not sure about should be handled by a specialized contractor. Have an inspection done or perform one yourself as long as you know what to look for. Remember, your inspector can typically only inspect what they can see and what their tools will allow for. In some instances, a second opinion is needed! After the inspection, get estimates from local contractors as to how much the repairs will cost you. By performing the inspection up front, you won’t have to worry about unseen setbacks down the road. You’ll be able to know what to expect and how to budget accordingly, preventing disastrous cost overruns later.
A lot of wholesalers send numbers based on their own personal estimates, which usually have a higher after repair value and lower repair costs to make their price look better. While these estimates sometimes are accurate, it is ultimately up to you to decide if you are receiving a good deal. Your wholesaler will likely provide you with some comps and market information, however, it doesn’t hurt to find some of your own or have a trusted realtor pull comps for you. For flips, I would recommend having your realtor tell you what they think they would be able to get after the renovation, and promise to use them! Try to get 3 solid comps for your prospective property both before and after the repairs are made.
Check The Title
Always hire a professional company to perform a title search before making your purchase. Your wholesaler usually will start this process, and there are countless deals that have fallen through due to liens and other title issues. Some investors will rush into purchasing a wholesale property from an inexperienced wholesaler, not realizing the property also comes with a cloudy title, which will come back to you once you try to sell it. Just like when buying a property from a private buyer, it’s important to do your due diligence and your homework before signing a contract to buy. Our contracts come with the stipulation that if title is cloudy, you are released from your obligation to buy.
Buying a house from a property wholesaler can provide you with the profits you want to see from your Baton Rouge investment property! Get in touch with us today to learn more about what we do!